Available online at www.sciencedirect.

com

ScienceDirect
Procedia - Social and Behavioral Sciences 189 (2015) 252 – 258

XVIII Annual International Conference of the Society of Operations Management (SOM-14)

Impact of Technology in E-Retailing Operations: A Consumer

Perspective
Achit Agarwala, Vinod Kumar Yadavb
a
Research Assistant, Harcourt Butler Technological Institute, Kanpur 208002, India
b
Assistant Professor, Harcourt Butler Technological Institute, Kanpur 208002, India

Abstract

From getting product information with the detail process map link to the final minute courier / postal alert has been enriching
experience to Indian consumer in recent years. The strengthen belief of consumer on e-operations has been a major breakthrough
in Indian retail industry. This has been an outcome of a meticulously designed delivery logistics equipped with technological
innovation to provide a new level of consumer experience. This has also led to e-retailing reform in India attracting more
investment in technologically driven R&D to enable a super-rich experience to Indian consumers. The impact of technology can
be seen in improved performance of sector with a turning point.

This paper is an attempt to unpin these technological innovations in product distribution system in E- retailing. It also aims to
highlight the mal-practices in E- retailing during pre-technological era and mapping their solution in post technological era.

© 2015
© 2015TheTheAuthors.
Authors.Published
Publishedbyby Elsevier
Elsevier Ltd.Ltd.
This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-reviewunder
Peer-review underresponsibility
responsibility of the
of the scientific
scientific committee
committee of XVIII
of XVIII AnnualAnnual International
International Conference
Conference of the Society
of the Society of of
OperationsManagement
Operations Management(SOM-14).
(SOM-14).

Keywords: Technology; e-retailing; e-operations; retail; pan shops; kirana stores; pansaari stores; POS

1. Introduction

The Indian retail industry is the fifth largest after U.S, Germany, Hong Kong, Europe [1] in the world comprising of
unorganized sector i.e. local pan shops, kirana stores, pansaari stores in the local market etc and organized sector
like shopping malls, company outlets, direct marketing channels and recent trend e-portals. This industry is one of

1877-0428 © 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of XVIII Annual International Conference of the Society of Operations
Management (SOM-14).
doi:10.1016/j.sbspro.2015.03.220
 Achit Agarwal and Vinod Kumar Yadav / Procedia - Social and Behavioral Sciences 189 (2015) 252 – 258 253

the fastest growing industries in India undergoing a transformation from unorganized sector to organized sector.
This transformation is making it obvious to expand horizontally as well as vertically. The vertical expansion leads to
side coverage of market and consumer of different strata. The horizontal expansion leads to increased requirement
of manpower. Hence, the retail sector has emerged as a potential job provider to the Indian economy boosting its
growth. The strong economic status has led to increase in per capita income at current prices during 2012-13 which
was estimated to be Rs. 68,747 as compared to Rs. 61,564 during 2011-12, showing a rise of 11.7 % [2]. The people
are not only becoming aware of various new products and services but they are also becoming quality conscious
which has added another dimension to the market competition. The consumers have been made aware of various
choices with various advertising strategies by the retail giants in India. Earlier they used publicity of various
products by word of mouth. Now, the strategy has shifted from this to promotion of products by credible sources
impersonating as experts from various organizations, which in turns influences the consumer to great extent. The
consumer has become aware of various products available in the market. They know about the products and want to
know more with the help of print media, internet etc. This has necessitated the careful handling of consumer at point
of sale (POS) because the consumer of today is well aware of product range both horizontally and vertically. The
consumers have developed a habit to enquire about all the aspects before purchasing a product and expect the
answer to the satisfaction level by the retailer. The actual purchase depends on the level of satisfaction.

The Indian Retail Industry is expected to grow from US$330 billion in 2007 to US$640 billion by 2015 (According
to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney) [2]. The retail industry comprises
8% of total employment opportunities in Indian economy and contributes approximately 22 % of country’s GDP.
The Indian policy reform on FDI in retail sector has opened avenues to global retail giants to open their stores in
India. This will, further, lead to increase in employment opportunities, support to small scale industries and
improvisation of logistic and supply systems to Indian retail sector.

2. Changing Paradigms in Retail Sector

The Indian retail industry has passed through various stages making new milestones to crack and companies have
always augmented their strategies to align with these milestones. From street side local retailing to e-retailing via
World Wide Web, the only thing that has not changed is consumer satisfaction. The ways of satisfying consumer
need have always kept on changing. The technology has played a pivotal role in this whole process. The major
milestones have been covered in following manner.

2.1. Retail experience in 1970's

This was a period when the shopkeepers/ producers ruled the market i.e. they had complete control over the
products and choices of the consumer. In other words, the consumers had very less or no choice of products.
Consumers had to choose among the limited number of products available in the market place at the shopkeeper
outlet. Since the shopkeepers had complete control. They used to extract money for the product from the consumer
as per they thought and keeping in mind, the social status of the consumer visiting the shop. This discrimination
could also be seen in other aspects such as the products availability for the various consumers of various income
groups. The products quality would change from superior to inferior as per the decline social status of the consumer.
To add to it after sales services and product replacement also used to differ as per the level of consumer purchasing
the product.
2.2. Retail experience in 1980's
This was the era of pre-globalization when the retailing of products was centralized. The producers were sending
the products as per the demand to distribution centers and the shopkeepers were supposed to take the assorted
products as per the need and demand of the various consumer groups of their area. This change helped the
consumer. The consumers now had more options than earlier but still the prices were being controlled by the
254 Achit Agarwal and Vinod Kumar Yadav / Procedia - Social and Behavioral Sciences 189 (2015) 252 – 258

shopkeepers. The services offered were changing, but the technology still had to play a pivotal role in the retail
industry which would add a new face to the consumer experience.
2.3. Retail experience in 1990's

This was the era of globalization; it was the period when the global companies were attracted with potential
growth in Indian market. These companies started flooding the Indian market with their products leading to price
war. These companies also started spending substantial expenditure on advertisements to attract the consumers. The
companies started using logistics in a more sophisticated manner to fulfill the needs of consumers i.e. by providing
more and more options available at point of sale to the consumers. The concept of consumer care was coined as a
strategy to compete in market. The level of service to consumers started becoming upgraded to evolve overlooking
the social constraints. The consumers were being treated as equals in all the aspects. But the delivery process was
still traditional with dominance of distribution channels in time. In short, the market was developing and the
companies had started making use of technology as a tool to serve in a better manner. The optimum use of the
technology was yet to be made.
2.4. Retail experience in 2000's
In this era, the companies have flooded the market with a wide variety of products for the consumer, the
consumer is branded as the king and all the companies are at the service of the consumer to provide him/her with the
product with whatever specification they desire at genuine cost and at desired place. Here comes the real use of
technology, i.e. the consumer can order the product from a wide range on mediums i.e. mobile, SMS, internet etc.
while sitting at the home. It helps in knowing the number of days in which the product would be delivered, the place
at which the product is at a particular time. If product is not as per expectations it can be returned without any
questions. The payment mode has also got up-gradation in term of cash on delivery, online transfer, mobile
payment, card payment and secure payment gateways provided by the banks in collaboration with the companies
and various vendors (Flipkart, Amazon, Snapdeal, Jabong etc.). The technology has got so much infused in the retail
that can be seen from the moment when a consumer starts searching for a product and orders it a message is sent to
the consumer regarding booking of the order to the transit status to the delivery point everything can be traced by the
consumer by the help of technology.

3. Technological reforms in E- Retailing operations

From getting product information with the detail process map link to the final minute courier / postal alert has
been enriching experience to Indian consumer in recent years. The strengthen belief of consumer on e-operations
has been a major breakthrough in Indian retail industry. This has been an outcome of a meticulously designed
delivery logistics equipped with technological innovation to provide a new level of consumer experience.

3.1. Product survey and ordering

When consumer thinks to purchase a particular product, the first step an India consumer follow is to check and
compare the detail specifications, price etc from the credible source. The traditional method of credibility testing
was to get first hand user information and experience from the consumer. With the advent of newer technologies the
online product survey and comparison across the different e portals is very common. The technology has helped the
consumer to such an extent that the consumer can very easily compare a couple of products simultaneously on
various websites such as junglee.com and through this process the consumer satisfies his cravings to buy the
product. Everything is being duly noted in the information system, for the future references to be used by the
manufacturer, the e- retailer and consumer.
Once the consumer is through with all the comparing of the product it is directed to the e-retail portal where the
consumer finally checks out the product details such as price/ discount structure/ location availability/ delivery
option/ mode of payment.
 Achit Agarwal and Vinod Kumar Yadav / Procedia - Social and Behavioral Sciences 189 (2015) 252 – 258 255

After all the checking the consumer makes up his mind to purchase the product and as the product is ordered,
there is a message send automatically to the consumer via information centre that the product order has been placed
successfully. The information updating to the consumer is the impact of technology in e- retailing.
Once the product order is placed by the consumer it is directed to the payment option where it gives an option to
pay for the product by Debit card / Credit card or opt for COD options. The online payment is compulsorily through
secured payment gateway.
3.2. Order Processing and Product Confirmation

Once the product payment has been made the product order is being processed and the supplier/ retailer of the
product is made aware of the same through an automated system, at this point as well the technology makes its
presence felt not directly but indirectly.
Another use of technology which is not seen by the consumer but it happens, as the order is confirmed the retailer
is being made aware of the sale of product via the e retailer and the arrangements are being made by the retailer for
the movement of the product. The well-defined and efficient system of supply chain makes this process almost error
free.
3.3. Product Packaging, Logistic and Delivery
As soon as the product is being made available by the retailer, its being packed as per the company standards and
nature of the product i.e. products that are of glass/ bone china are packed more securely. Extra cushion is provided
so as the product could withstand the journey it has to make and it does not breaks during the journey or it should
not be broken when the consumer opens the packet. Hence the product is being made ready for the transportation.
The role of logistics becomes crucial at this stage to stick with the commitment made by e- retailer.
Once the product is packed securely and safely the product is being ready to be shipped/ dispatched to the
consumer on the desired address, and as soon as the product is dispatched the consumer receives a message stating
the confirmation of dispatch of order, and till the time the product is being delivered the consumer can easily track
the order and see the current position of the product.
As per the message the consumer is made aware about the tentative delivery date of the product and the product
is being delivered to the consumer on the desired address usually on or before delivery date.

3.4. The Technology Edge

Right from the product survey till the product delivery, the role of technologically equipped information centre
becomes crucial. The consumer’s choice, surveyed products and visited links each information is customized and
personalized to remind you in future about your past activity.
The product features, comparison, price analysis, and probable date of delivery have never been so accustomed in
past. This update is for a guest visitor to e-portals. Once a product is put in cart, the technology starts chasing you
till the order placing.

The best part of e-retailing and technology is to update the consumer about each happening about your order.
Each stage is linked to the information centre and consumer can at any time; check the status of product journey.
The e-portal also keeps sending SMS and emails to consumer to make him / her part of supply chain.
256 Achit Agarwal and Vinod Kumar Yadav / Procedia - Social and Behavioral Sciences 189 (2015) 252 – 258

Consu Product Product Product Product Product

mer Survey Detail Ordering Confirmati Order
Check on Processing

Referral E-retail E- 1. Putting Supplier /

Web Portal portal shopping in cart Retailer
2. Choosing
payment
mode
3. Giving
shipping
address
etc

INFORMATION
CENTRE

Order Product Product Product Consumer

Confirmati Packaging Shipping Delivery Receiving
on

By retailer Retailer Logistics Courier 1. Product

via e- Company Company receivin
retailer g
2. Payment
via COD
if opted

Figure 1: E-Retailing Operation Flow Chart Impact of Technology in E- Retailing

 Achit Agarwal and Vinod Kumar Yadav / Procedia - Social and Behavioral Sciences 189 (2015) 252 – 258 257

The technology has played a game changer in retail segment especially e-retailing. The need for technological
innovation justify to a great extent the consumer dynamics the e - shopping experience of consumer has become rich
as compare to the traditional shopping. Some of the key impacts of e- retailing are listed below:
a) Fast order: Earlier were the days when people used to go into the markets roam from shop to shop bargain for
every chip in the pocket, in the hot/cold/humid weather drenched up to the skin, all of this is changing with the
intrusion of technology, now the consumer doesn't need to go out to the shops/brands, on the contrary shops/brands
come to the consumer who is not on the streets but is on his bed/chair in his cubicle/room far away from the hustle
and bustle of the market finalizing the product on various shopping sites with a variety of discount structures which
are being provided by the companies to its consumers who shop online or the companies have started E- Retailing.
This has helped the consumer to order much faster and save both time and money by the use of technology.
b) Competitive rates: When a consumer moves into market to purchase products, the consumer is being made
aware of few products and the prices at which they are available to purchase, but technology helps the consumer to
search and compare simultaneously a variety of products available on a scale of various qualities, which cannot be
done manually and the best part there is no fight between shopkeeper and consumer if the whole deal does not works
up.
c) Easy Tracking: Once a product is being confirmed by the consumer to be purchased, a message is being
sent to the mobile and email id of the consumer stating the current status of the product. The technology has evolved
so much that the consumer can trace its order at every point i.e. from the confirmation of the order, its payment (in
case of internet banking), shipping of product from the warehouse, transit status, reaching to the destination
warehouse, delivery at the consumers doorstep, payment (COD), return of the product in case of non-compliance of
specifications of the product. The consumer can trace its order from start to finish.
d) Payment gateway: Technology has made money transactions very easy over a period of time, earlier people
use to carry money in their wallets, now they carry credit/debit/cash cards and this has helped consumers to pay for
the products that they select on various shopping sites through secure payment gateways provided by the banks to
these shopping sites. These gateways, sometimes, provide extra discounts to the consumers who use their services,
which adds as an additional benefit to the consumer.
e) Impact on society: It's truly said that an excessive use of anything leads to a negative impact on the
surroundings which could be easily seen with the recent activities i.e. fiasco created by FLIPKART. In other words
there are so many sites that offer product to the consumers using various advertising techniques, this leads to
confusion in the minds of the consumers and very often, many sites misleads the consumers which holds a negative
impact on the society.

4. Benefits of E- Retailing

With the globalization, companies came into the Indian retail sector and elevated the level of services and due to
which the traditional shops also had to change the modus operandi of their work, some other benefits of e-retailing
are stated below:

a) Business can be done at any given point of time irrespective of time and place.
b) Better buying decisions are made.
c) Wide variety of products are available to choose from.

d) Easiest and cheapest way to do business.

e) Reduction in cost to company.
f) Faster delivery of products.
258 Achit Agarwal and Vinod Kumar Yadav / Procedia - Social and Behavioral Sciences 189 (2015) 252 – 258

g) Better paying facilities are made available.

h) Development of infrastructure.
i) Opportunities to SSE to show presence on global platforms.
j) Cash on Delivery (C.O.D)

5. Conclusion

The retail sector has experienced a remarkable change over a period of last few decades. The journey of
consumer from kirana store shopping to e-portal experience has been enriching. The technology has added
additional flavor to this experience with a strategic orientation. The innovation in upcoming technologies will
definitely make this experience more spicing. The role of consumer and technology will keep dominating in retail
sector and companies will require to re-orient their strategies around these factors.

References

Arora,J. (2013). Prospects of E- Retailing in India. IOSR Journal of Computer Engineering (IOSR-JCE), ISSN: 2278-0661, P-ISN: 2278-
8727, Volume 10, Issue 3.

B. Farhan,Top Cities and Countries with the Most New Global Retailers Entering 2013 and 2011.[Online] Available:
http://retailindustry.about.com/od/famousretailers/a/Top-Cities-Countries-Most-New-Global-Retailers-Entering-2013-2011-retailing-trends.htm.
[Accessed 17 October 2014].

Chanana, N., & Goele, S. FUTURE OF E-COMMERCE IN INDIA.International Journal of Computing & Business Research, ISSN (online):
2229-6166.

PTI,"India's per capita income rises to Rs 5,729 per month" 07 Feb. 2013. [Online]. Available:
http://articles.economictimes.indiatimes.com/2013-02-07/news/36972679_1_constant-prices-income-in-real-terms-capita-income,[Accessed 17
October 2014].

E commerce boom triggers transformation in retail logistics. November 2013

Evolution of E- commerce in India creating the bricks behind the clicks. ASSOCHAM India.